WASHINGTON, MAY 25, (DNA) –  US intelligence chiefs have warned Congress that India may launch aggressive actions inside Pakistan on the pretext of stopping “cross-border attacks” and that the ongoing exchange of artillery shells across the Line of Control (LoC) may lead to a direct conflict between the nuclear-armed neighbours.

The warning given at a US Senate Armed Services Committee hearing on Tuesday afternoon followed alarming statements from New Delhi and Islamabad, threatening attacks and counterattacks.

“India has sought and continues to move to isolate Pakistan diplomatically and is considering punitive options to raise the cost to Islamabad for its alleged support to cross-border terrorism,” Lt Gen Vincent Stewart.

“Increasing numbers of firefights along the Line of Control, including the use of artillery and mortars, might exacerbate the risk of unintended escalation between these nuclear-armed neighbours,” warned the director for National Intelligence, Daniel R. Coats.

The two officials were briefing senators on the US intelligence community’s threat assessment for 2017-18, during which they see terrorist groups attacking American interests across the globe.

On Tuesday, the Pakistan Army denied the Indian Army’s claim that it had carried out an ‘operation’ against Pakistani posts along the LoC. Indian Army’s Maj Gen Ashok Narula claimed the action was aimed to “bring down the number of terrorists in Kashmir so that local youths are not encouraged to take up arms”.

Pakistan says that it never allows terrorists to use its soil for launching attacks into another country. Gen Stewart told the Senate committee that continued threat of “high-level terrorist attacks” in India, violence in India-held Kashmir and bilateral diplomatic recriminations would further strain India-Pakistan ties in 2017.